PGGM is a Dutch pension administrator that provides services in pension administration, communication, board advisement and asset management. It manages approximately €206 billion in pension assets for 9 pension funds and serves over 2.9 million participants.[1]
PGGM’s “Responsible Investment Implementation Framework” states that “PGGM excludes companies from investment if they are involved in the production of and/or trading in weapons whose use leads to a violation of fundamental human rights”, including nuclear weapons. Companies are also excluded “if they have a de facto or practical controlling interest in a subsidiary or joint venture which is substantially involved in the production of or trading in these weapons”. [2]
PGGM’s exclusion policy applies to all asset management categories, including those managed by external asset managers. However, in the case of “direct investment in external funds or mandates”, clients can choose not to follow PGGMs advice.[3]
PGGM makes use of a publicly available exclusion list to implement its policy, based on research by MSCI and Sustainalytics.[4] As of January 2018, the companies excluded because of involvement in the production of nuclear weapons are: AECOM Technology, Aerojet Rocketdyne, Airbus, Babcock International, BAE Systems, Boeing, BWX Technologies, CNIM, Fluor, General Dynamics, Harris, Honeywell, Huntington Ingalls Industries, Jacobs Engineering, Larsen & Toubro, Leonardo, Lockheed Martin, MOOG, Northrop Grumman, Raytheon, Rockwell Collins, Safran, Serco, Thales and Walchandnager Industries.[5]
We commend PGGM for adopting a public policy on nuclear weapons. We recommend PGGM apply its policy to all investments, including those on behalf of all clients. We look forward to engaging with PGGM, so a strong and comprehensively applied policy may be listed in the Hall of Fame in a future update of this report.
[1] PGGM, “Onze Klanten”, PGGM website (https://www.pggm.nl/wat-doen-we/onze-klanten/Paginas/Default.aspx), viewed 23 January 2018; PGGM, “Jaarverslag PGGM N.V. 2016”, page 9, PGGM website (https://www.pggm.nl/wie-zijn-we/jaarverslagen/Documents/pggm_nv_jaarverslag_2016.pdf), viewed 23 January 2018.
[2] PGGM, “Responsible Investment Implementation Framework”, May 2014, page 17, PGGM website (https://www.pggm.nl/english/what-we-do/Documents/responsible-investment-implementation-framework_may-2014_pggm.pdf), viewed 23 January 2018.
[3] PGGM, “Responsible Investment Implementation Framework”, May 2014, page 16, PGGM website (https://www.pggm.nl/english/what-we-do/Documents/responsible-investment-implementation-framework_may-2014_pggm.pdf), viewed 23 January 2018; PGGM, “PRI Reporting Framework 2017”, PRI website (https://reporting.unpri.org/surveys/PRI-reporting-framework-2017/F1E71408-1F11-40BF-8C7C-1479091F5947/79894dbc337a40828d895f9402aa63de/html/2/?lang=English&a=1), viewed 23 January 2018.
[4] PGGM, written response to PAX, 8 December 2017.
[5] PGGM, “Exclusion list companies”, PGGM website (https://www.pggm.nl/english/what-we-do/exclusions/Pages/Exclusion-list-companies.aspx), viewed 23 January 2018.
Last updated March 2018